Why Ethereum's Domain Registration (ENS) is so popular? ENS generated over $3.76 million in trading volume on the Opensea platform in a few hours.
The current standard for crypto-domains is the Ethereum Name Service (ENS). A naming standard allows people to build their usernames on the blockchain. They are very versatile domains that have found many use cases in the decentralized world and Web3.
Ethereum .eth domains
Its developers explain that the Ethereum naming service is an open, extensible, and, more important, a distributed system. A mechanism where people can create usernames by mapping human-readable names to machine-readable identifiers facilitates the use and adoption of the Ethereum ecosystem.
From ENS, individuals can create unique identifiers for their Ethereum and other cryptocurrency addresses. In addition, this blockchain naming service allows metadata, such as canonical names, to be associated with ETH addresses. ENS also allows importing domains specific to the DNS domain name system of the Internet as we know it for use on the blockchain.
Within the ENS ecosystem, domain names in Ethereum maintain a hierarchical structure. So people who own a domain in this service can set up a subdomain for any use they wish.
ENS simplifies the use of crypto-addresses
One of the primary uses these domain names have is in cryptocurrency addresses. People use Ethereum domain names to get paid with cryptocurrencies, including Bitcoin (BTC).
These domain names have gained wide acceptance in the crypto industry because they eliminate the complexity of using crypto addresses. There is no need to copy and paste lengthy cryptocurrency addresses to receive a payment with ENS, which has significantly facilitated their use and management.
Ethereum domain names also have wide use for creating decentralized websites. With ENS, people can create censorship-resistant websites by connecting their websites to the Interplanetary File System (IPFS) to store and protect their data and information.
As mentioned above, it is also possible to use the ENS service with existing DNS domain names. For example, domain names such as ".com", ".org", ".io", ".app", ".art", among others, are supported by ENS. This service is also compatible with several of the most widely used decentralized protocols and applications in Ethereum, such as Opensea, Uniswap, Aave, Aavegotchi, and Chainlink. In addition to web browsers such as Opera, Brave, and Cloudflare.
.eth domain sales grew 4,500% in a week
Opensea, Ethereum's largest NFT marketplace, records a 4,550% weekly increase in ENS domain name trading volume. According to the platform, people traded 4,154.4 ETH on these domain names in a single week. The figure is equivalent to about $11.5 million.
The Ethereum domains selling in Opensea has a minimum price of 0.005 ETH. On the other hand, the Ethereum Name Service (ENS) web portal registers, in total, 825,000 Ethereum domains created and about 349,000 owners of these names.
10kClub and Bored Ape are behind this increase
According to the ENS Dashboard portal, which tracks ENS market statistics, domain creation on Ethereum skyrocketed. Last April 26, users registered more than 10,600 Ethereum domain names. That day more than 769.000 active Ethereum domains were active.
Web3's exclusive social club for ENS 10kClub holders appears to be behind the daily volume growth of these domains. Individuals can access that club by owning 3- or 4-digit Ethereum domain names. The domain "god.eth" had a recent bid of 100 ethers, over $278,000 currently. The crypto collector, known as "50DD57," was responsible for the bid.
Likewise, the demand for ENS domains is also increasing due to Bored Ape's NFT owners' interest in having Ethereum domain names matching their NFT token numbers. According to information provided by journalist Colin Wu on his Twitter account, the domain "114.eth" was acquired by 15 WETH on OpenSea.
The ENS government token grew by 37% this week
Ethereum Name Service has a governance token called ENS, launched last November to reward its community. CoinMarketCap shows that more than 37% appreciated the token in a single week. It is currently worth $18.80.